Newark Homesteaders Face Financing Trouble

Construction loans are viewed as riskier than mortgages, and this is posing a problem for some 100 lot-owners in Newark, N.J.

According to the New York Times, these owners purchased vacant lots sold by the city for $1,00 apiece on Valentine’s Day. The program was made by the city’s Deoartment of Economic and Housing Development as a way to reduce neighborhood blight and attract more families.

A condition to purchase the lot is that only couples willing to build and live on their lots for at least five years were eligible, and that they must present either proof of lender financing or that they have enough cash to cover the cost of construction.

Read more